Investors are gearing up for a pivotal week, with the spotlight on key earnings reports from retail giants Home Depot, Target, and Walmart. This week’s economic landscape will also be shaped by the release of crucial retail sales data.

Earnings Reports and Retail Sales Data Awaited

As the new week kicks off, market players are eagerly awaiting the unveiling of the Federal Reserve Bank of New York’s consumer inflation expectations data on Monday. The previous month’s Survey of Consumer Expectations from the New York Federal Reserve hinted at the persistence of elevated inflation expectations among Americans in the coming years.

Monday is expected to be relatively quiet on the economic data front, with no major corporate entities slated to disclose their quarterly results.

Home Depot’s Performance in the Spotlight

Home Depot, the home improvement behemoth, takes the lead as the first major retailer to report earnings this week. Following a lackluster first quarter, the company’s revenue fell short of expectations, prompting a downward revision of profit and sales forecasts for the year.

Analysts have observed Home Depot’s stock facing headwinds. Telsey Advisory Group recently downgraded the company’s stock due to a softening housing market, characterized by declining home sales and mounting mortgage rates.

Target’s Struggles and Other Reports

Tuesday brings forth another wave of earnings reports. Investors will be closely monitoring Target’s guidance, a crucial factor in the wake of the company’s sales and revenue slump associated with its LGBTQ Pride merchandise.

The company witnessed a market capitalization dip of $15.7 billion in June, nearing a 52-week low. In a similar vein, TJX, the parent firm of TJ Maxx, Marshalls, and Home Goods, will announce earnings before the opening bell on Tuesday. The technology giant Cisco Systems is scheduled to reveal its earnings after the market closes.

Walmart’s Positive Outlook and Notable Mergers

Thursday morning, all eyes will be on Walmart as it discloses its quarterly results before Wall Street’s opening bell. The company lifted its sales and profit projections for the year after experiencing a surge in its grocery and e-commerce sectors.

The week also ushers in significant mergers and acquisitions news. Tapestry, the parent company of fashion brands Coach, Versace, and Michael Kors, revealed plans to acquire Capri Holdings for a staggering $8.5 billion. This strategic move aims to establish a powerful U.S. fashion house that can stand toe-to-toe with European competitors.

Varied Data and Prominent Players

Wednesday sees the release of crude oil inventories, housing start figures, building permits, and mortgage application data. Meanwhile, the Labor Department will provide the latest insights into jobless claims.

Friday brings further corporate disclosures, with Deere, the manufacturer of farm equipment and heavy machinery, expected to share its quarterly performance. The Illinois-based company had previously increased its net income outlook for 2023 in May.

Additionally, Estée Lauder and Palo Alto Networks will contribute to the busy Friday reporting schedule. Meanwhile, Baker Hughes will release its latest count of oil and gas rigs.

Investors and economists alike are poised for an eventful week, driven by earnings revelations, economic indicators, and strategic business moves that collectively shape the trajectory of the financial landscape.

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